[Federal Register Volume 59, Number 86 (Thursday, May 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10728]


[[Page Unknown]]

[Federal Register: May 5, 1994]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[DA 94-371]

 

Provision of Direct Telex Service Between the United States and 
Cuba

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission has authorized IDB WorldCom Services, Inc. to 
provide direct telex service between the United States and Cuba 
pursuant to the Executive Branch's general policy guidelines for 
implementation of the telecommunications provisions of the Cuban 
Democracy Act, which provides that ``telecommunication services between 
the United States and Cuba shall be permitted.''

EFFECTIVE DATE: April 22, 1994.

FOR FURTHER INFORMATION CONTACT:
John M. Coles, Attorney, Common Carrier Bureau, (202) 632-7265.

SUPPLEMENTARY INFORMATION: 

    In the Matter of: IDB WorldCom Services, Inc. Application for 
authority to lease and operate facilities for the provision of 
direct telex service between the United States and Cuba.

File No. I-T-C-94-211

Order and Authorization

Adopted: April 14, 1994
Released: April 22, 1994

    By the Chief, International Facilities Division:
    1. The Commission has under consideration the above-captioned 
application filed by the IDB WorldCom Services, Inc. (IDB) requesting 
authority pursuant to Section 214 of the Communications Act of 1934, as 
amended, to establish channels of communication between the United 
States and Cuba for the provision of direct telex service. The 
application was placed on the Commission's public notice and no 
comments were received.
    2. IDB proposes to provide international telex service between the 
U.S. and Cuba via the INTELSAT satellite located at 325.5 deg. E.L. 
using appropriately licensed existing earth station facilities owned or 
leased by it or its affiliates. Specifically, IDB requests authority to 
lease from Comsat and operate one 9.6 kbps analog SCPC circuit to be 
used together with matching facilities provided by INTERTEL S.A. 
(INTERTEL) of Cuba to derive up to 46 telex circuits with the use of 
TDM equipment. IDB states that it has already entered into an operating 
agreement with INTERTEL for the establishment of direct telex service 
between the U.S. and Cuba. Under the terms of its agreement with 
INTERTEL, there will be a 50/50 split of the prevailing $3.00 per 
minute accounting rate for telex services.\1\ IDB states that it will 
initiate service within one year.
---------------------------------------------------------------------------

    \1\IDB notes that the prevailing accounting rate for telex 
services is $3.00 per minute which is typical for most Caribbean, 
Central American and Latin American countries. In comparison, the 
prevailing accounting rate for switched voice services between the 
U.S. and Cuba is $1.20 per minute. IDB explains that it is common 
for the telex accounting rate between two countries to be much 
higher than the switched voice accounting rate.
---------------------------------------------------------------------------

    3. IDB states that the public interest would be served by a grant 
of its application since it will result in the rapid introduction of 
new lines of telecommunications between the United States and Cuba. IDB 
notes that it is virtually impossible to make a telephone call from the 
U.S. to Cuba. Because of the continuing dispute over the appropriate 
switched voice accounting rate and the disposition of blocked funds, 
U.S. carriers have been unable to expand direct telephone service 
between the U.S. and Cuba. IDB proposes to offer direct telex service 
as a means to satisfy a small portion of the enormous demand for 
telecommunications between the U.S. and Cuba.
    4. In a letter dated July 22, 1993, the U.S. Department of State 
informed the Commission of the Executive Branch's general policy 
guidelines for implementation of the telecommunications provisions of 
the Cuban Democracy Act, which provides that ``telecommunication 
services between the United States and Cuba shall be permitted.''\2\ 
Among the policy guidelines are the following requirements: (1) The 
proposals must have the potential to be operational within a year; (2) 
settlements must not be more favorable to Cuba than the current 50/50 
split of the $1.20 per minute accounting rate; (3) proposals must be 
limited to equipment and services necessary to deliver a signal to 
Cuba; (4) proposals must utilize modes of communications already in 
place between the U.S. and Cuba; and (5) carriers shall report the 
number of circuits activated by facility on June 30 and December 31 of 
each year and on the one-year anniversary of the notification by the 
FCC in the Federal Register.
---------------------------------------------------------------------------

    \2\Letter dated July 22, 1993, from Richard C. Beaird, Acting 
U.S. Coordinator and Director, Bureau of International 
Communications and Information Policy, U.S. Department of State to 
FCC Chairman James H. Quello.
---------------------------------------------------------------------------

    5. Upon consideration of IDB's application, we find that a grant of 
its application will serve the public interest subject to the 
conditions set forth below. IDB's application is consistent with the 
Executive Branch's general guidelines set forth in the Department of 
State's letter. IDB states that it will initiate service within one 
year, and expects to initiate service shortly after all requisite 
regulatory approvals have been obtained. IDB's proposed use of INTELSAT 
facilities and appropriately licensed existing earth station facilities 
satisfies the requirements that facilities already be in existence and 
be limited to equipment and services necessary to deliver a signal to 
Cuba. With respect to IDB's proposed 50/50 split of a $3.00 per minute 
accounting rate, the Department of State in a follow-up letter dated 
March 14, 1994 found a $3.00 per minute accounting rate for telex 
service to be consistent with the guidelines contained in its July 22, 
1993 letter. Furthermore, the Department of State states that it has no 
objection to our approval of the application.\3\
---------------------------------------------------------------------------

    \3\Letter dated March 14, 1994, from Richard C. Beaird, Acting 
U.S. Coordinator and Director, Bureau of International 
Communications and Information Policy, U.S. Department of State, to 
FCC Chairman Reed Hundt.
---------------------------------------------------------------------------

    6. According, it is Ordered That application File No. I-T-C-94-211 
is granted and IDB WorldCom Services, Inc. is authorized to:
    a. lease from Comsat and operate one 9.6 kbps analog SCPC circuit 
between an appropriately licensed existing U.S. earth station and the 
INTELSAT satellite located 325.5 deg. E.L. correspondent in Cuba, 
INTERTEL;
    b. lease and operate necessary connecting facilities in the U.S.; 
and
    c. use the above facilities for the provision of direct telex 
service (46 circuits) between the U.S. and Cuba subject to the 
conditions set forth herein.
    7. It is further Ordered That the service authorized herein must be 
implemented within one year from the date of release of this order.
    8. It is further Ordered That the applicant shall submit reports on 
or before June 30, and December 31 of each year, and on the one-year 
anniversary of the notification of the grant of this application in the 
Federal Register indicating the numbers of circuits activated by 
facility.
    9. It is further Ordered That this authorization is subject to the 
applicant's obtaining all necessary licenses and authorizations from 
the Departments of Treasury and Commerce.
    10. It is further Ordered That this order is subject to revocation 
without a hearing in the event the Department of State or FCC 
determines that the continuation of communications between the U.S. and 
Cuba is no longer in the national interest.
    11. It is further Ordered That, pursuant to section 203 of the 
Communications Act, 47 U.S.C. Sec. 203, and part 61 of the Commission's 
Rules, 47 CFR part 61, IDB shall file and have in effect a tariff for 
the service authorized in this order before offering services to the 
public.
    12. It is further Ordered That IDB shall file copies of any 
operating agreements entered into by itself or its parent/affiliates 
with its correspondents within 30 days of their execution, and shall 
otherwise comply with the filing requirements contained in Section 
43.51 of the Commission's Rules, 47 CFR 43.51.
    13. It is further Ordered That IDB shall file annual reports of 
overseas telecommunications traffic required by Sec. 43.61 of the 
Commission's Rules, 47 CFR 43.61.
    14. It is further Ordered That IDB shall file a Section 214 
application for any additional circuits it proposes to establish 
between the U.S. and Cuba.
    15. Acceptance of this authorization shall be deemed acceptance of 
the conditions set forth herein.
    16. This authorization is issued pursuant to Sec. 0.291 of the 
Commission's Rules and is effective upon release. Petitions for 
reconsideration under Sec. 1.106 or applications for review under 
Sec. 1.115 of the Commission's Rules may be filed within 30 days of 
public notice of this order (see Section 1.4(b)(2)).

Federal Communications Commission.
George S. Li,
Chief, International Facilities Division, Common Carrier Bureau.
[FR Doc. 94-10728 Filed 5-4-94; 8:45 am]
BILLING CODE 6712-01-M